Whether you are self-employed or earn income from property in the UK, turnover means the total income earned from your business during the tax year.
For the self-employed, this includes:
• cash and cheques received.
• bank transfers and deposits received.
• card payments received.
• tips, fees and commissions.
• the value of any payments ‘in kind’ for work that you have done.
• the value of work that you have done that has been bartered for reciprocal goods or services provided by your customer.
• the value of any stock or goods that you have taken from the business without payment for use by you, your family or your friends.
• money owed to you at the accounting year-end date (unless you are operating under the Simpler Income Tax system).
For those earning income from property in the UK, this includes:
• income from any land that you own or lease out.
• income from any property that you let.
• any rent over £4,250.00 (for a full tax year) from a furnished room in your own home.
Turnover does not include:
• money received from the sale of a piece of equipment or machinery that you have previously owned and used in your business.
• money received from the sale of business premises.
• Business Start-Up Allowance or Enterprise Allowance.
It is important to remember that your turnover is not necessarily just the total of the money you have received. If you have bartered goods or services or accepted non-monetary payments, the monetary value of these need to be included in your turnover.
At CooperFaure, we have extensive knowledge of personal tax matters. If you have any questions on your circumstances, please contact email@example.com to arrange a free consultation.